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thomasmeany
Level 2

Contributing to employee non-workplace pension

How can I set an employee up who has a pension scheme which is NOT a workplace pension scheme?

 

My colleague and I are company directors and we both hold Self Invested Pensions (SIPPs) since these are cheap and convenient. It is most text efficient to contribute to the SIPP directly (therefore avoiding NI contributions) but I am not sure how to set this up on Quickbooks. 

 

Is this possible? 

 

 

10 REPLIES 10
John C
QuickBooks Team

Contributing to employee non-workplace pension

Hi thomasmeany

 

We would be grateful if you can inform us how you currently pay towards the pension scheme, are the contributions taken from your personal bank accounts?

thomasmeany
Level 2

Contributing to employee non-workplace pension

Hi, 

 

We (both directors) currently are lower rate tax payers and contribute to the scheme manually with funds that have been paid to us personally from our business. However, this means we have to pay NI contributions so for each £100 we contribute we pay £12 in NI contribution which we would not have to pay if this was paid directly from our salaries. 

 

Does Quickbooks have the option to setup an employee pension contribution which is NOT a workplace scheme?

 

Tom

EmmaM
QuickBooks Team

Contributing to employee non-workplace pension

Hello Thomas

 

Are you using QuickBooks Online Payroll or Paysuite for your payroll? If you click on employees does it say powered by Paysuite in the top left if you are clicking on employees

 

Thanks

Emma

thomasmeany
Level 2

Contributing to employee non-workplace pension

QuickBooks Online Payroll

GeorgiaC
QuickBooks Team

Contributing to employee non-workplace pension

Hi Tom,

 

Currently the QuickBooks Online Payroll only supports workplace pensions which are based on employee and employer calculation percentages.

 

Do you pay a known amount into your pension each month?

thomasmeany
Level 2

Contributing to employee non-workplace pension

Hi, 

 

Could you flesh your answer out a bit? It will help others with the same issue in the future. 

 

If I understand you correctly the Quickbooks online system only permits a fixed percentage of employer and employee contribution each month. This can be paid in three formats:

Relief at source (no tax)

Relief at source (w tax)

Net

 

I would opt for option 3 since in this way we could receive payment of the total amount before any deductions like NI or EE.

 

Is this possible? We do contribute fixed sums but would apply this via a percentage if necessary.

 

Best,  

Ryan_M
QuickBooks Team

Contributing to employee non-workplace pension

Good day @thomasmeany,

 

Let me help clear this up for you. At the moment, QuickBooks Online (QBO) only supports workplace pensions.

 

I'd suggest contacting your pension provider to confirm if it's possible. And if it is, you can also ask them how to record it in QBO.

 

Once that's been taken cared of, you can view this page for future reference: QuickBooks Online Payroll Hub.

 

Drop me a comment below if you have any other questions.

rod9
Level 1

Contributing to employee non-workplace pension

Hi, can you tell me when QB will be offering pension contribution functionality other than workplace pensions?  Many small business owners (me included) contribute to a SIPP each month.  QB does not appear to be able to deal with this.   

KlentB
QuickBooks Team

Contributing to employee non-workplace pension

Good day, rod9.

 

We're unable to provide a time frame to when this feature will be available in QuickBooks Online. At times, we roll out product updates and enhancements based on our customers' requests. Rest assured, I'll be sharing your feedback with our product developers and add your vote for this one.

 

As we assess this opportunity, I encourage you to visit our blog to stay current on all the QuickBooks news.

 

I'll be right here to keep helping if you have any other concerns or questions. Feel free to tag me in your comment.

james555
Level 1

Contributing to employee non-workplace pension

https://support.yourpayroll.com.au/hc/en-au/articles/[removed]-Setting-up-Deductions

 

think this can be done by 'Setting up an indefinitely recurring deduction',  labelling it as "Pension" which will appear on the payslip.

Then arrange to pay funds directly from the Business Account > SIPP account, to remove any ambiguity of SIPP funds going through your personal account and possible being viewed as taxable income received

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